Reviewing VAT Calculations

To perform online tax calculations for bills that are not invoiced and not fully paid, click the Calculate Taxes button on the Bill Summary Info page. Both sales and use taxes and VAT are calculated for lines that have a valid VAT code or a sales and use tax code.

Note:

VAT and sales/use tax amounts are not updated automatically when you change line amounts. To see updated tax amounts, you must retrigger the calculation from the Bill Summary Info page.

Credit lines retain the tax amounts that are calculated on the original invoices and therefore the tax amounts do not need to be recalculated.

Note:

You must click the Save button to calculate and save any VAT and tax information that is associated with the bill. These amounts may change when the system calculates final VAT and taxes during bill finalization.

The system tracks VAT separate from sales and use tax; the VAT amount appears in the Total VAT Amount field. In Bill Summary, you can click the VAT amount value to access the Bill Summary - VAT Information page, where you can view details about VAT. The VAT Summary group box on the Bill Summary - VAT Information page displays the results of the VAT calculation.

When a bill line is subject to VAT reverse charge, a customer VAT amount is calculated for the line. The customer VAT amount is paid to the VAT authority directly by the customer, so it is not included in the invoice amount due from the customer.